This past week a cannabis company confirmed it will join the S&P/TSX Composite Index, while the OCS is on the hunt for a new leader.
Village Farms International (NASDAQ:VFF,TSX:VFF) confirmed its inclusion into a market index as well as reported its latest financial results.
The Ontario Cannabis Store (OCS) is once again looking for a new leader after the confirmed departure of Thomas Haig as interim president and CEO.
Keep reading to find out more cannabis highlights from the past five days.
Village Farms reports renewed economic clearance amid key changes
It was a big week for Village Farms shareholders, as the company released its financial report for the Q4 2020 period and year-end results, after confirming it would be added to the S&P/TSX Composite Index.
Michael DeGiglio, CEO of Village Farms, said the index addition would bring “increased exposure, broader range of potential investors and enhanced liquidity” to the company.
The company highlighted the finalization of its acquisition deal for BC-based producer Pure Sunfarms in November 2020.
Village Farms reported an 18 percent uptick in sales for the year to C$170,086 thanks to an increase in supply partner revenues. Overall for the year, the firm reported net income of C$11,608.
“We also expect to meaningfully advance our international cannabis strategy in 2021, building on our first investments last year, pursuing select emerging markets with significant long-term potential through capital efficient investments,” DeGiglio said.
Shares of Village Farms took a hit during the trading week following the financial results. The company has seen a double digit decline in share value since announcing its results last Tuesrday (March 16).
OCS looks for more stable leadership
It hasn’t been easy for the OCS to retain a CEO. Since 2018, the provincial body responsible of cannabis wholesale and online distribution, has seen 5 executive leaders come and go.
The sum will climb to six once its next interim leader steps down, a move done by design. While the OCS appointed chief merchandising officer David Lobo as its interim president and CEO now, the organization will search for its next long-term leader.
Last Monday (March 12) the provincial agency thanked Haig for his tenure, which started in September 2020. “As the OCS further transitions from a scale-up organization to a mature Crown corporation, new leadership will help oversee steady-state operations,” the OCS said in a statement.
A report from Marijuana Business Daily, found that while the high turnover may appear as troubling industry observers pointed to unique circumstances at the core of each appointment and departure.
Cannabis company news
Canopy Growth Corporation (NASDAQ:CGC,TSX:WEED)revealed it raised US$750 million through senior secured term loan from King Street Capital Management. “This transaction further strengthens Canopy’s balance sheet, provides additional capital to invest in high-return growth opportunities, and marks a key milestone for us as we work towards achieving a more efficient capital structure,” Mike Lee, EVP and CFO of Canopy Growth said.
Aphria (NASDAQ:APHA,TSX:APHA)confirmed on April 14 it will host a special shareholder meeting to oversee the voting on its proposed merger with Tilray (NASDAQ:TLRY). “We continue to believe our combined business strengths and capabilities will help us to connect more effectively with new and existing consumers and patients across Canada and internationally,” Aphria Chairman and CEO Irwin D. Simon said in a statement.
TerrAscend (CSE:TER,OTCQX:TRSSF)issued a settlement notice for the termination of an offtake agreement between itself and PharmHouse. Under the previously agreed deal, PharmHouse would sell cannabis to TerrAscend. But now after a one-time purchase of undisclosed cannabis product the agreement is no longer in place.
Sundial Growers (NASDAQ:SNDL)released its Q4 2020 and year-end operational results to investors. While the company celebrated a 10 percent spike in gross revenue for 2020, Sundial still reported a net loss of C$206.3 million for the entire year. Sundial CEO Zach George said the firm and its board are focussed on capital preservation and corporate stewardship at the moment.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.